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Gothaer posts profit for 2006

Posted On: Jun. 21, 2007 12:00 AM CST

COLOGNE, Germany— Cologne-based insurance group Gothaer A.G. has delivered its best result in 14 years, despite rising competition in core nonlife and industrial insurance lines.

The German group reported total gross premiums of €3.9 billion last year, up from €3.8 billion in 2005.

The insurer posted a profit of €120 million for 2006, up 16% on its 2005 profit and increased group capital by 18% to €1.1 billion.

The group reported €174 million of new business in liability and property lines.

Last year the company launched a campaign to push multi-risk policies and by May had already reported 117% more contracts than in May 2005, said the company.

Gothaer said that its main non-life operating company — Gothaer Allgemeine Versicherung A.G. — reported a solid performance in "difficult" market conditions.

Booked gross premiums fell slightly to €1.37 billion from €1.39 billion in 2005.

Conditions were particularly difficult in motor liability and volumes fell as a result. The company said that it managed to increase the number of contracts in industrial insurance despite sinking prices.